On August 2, 2017, the President signed into law the "Countering America's Adversaries Through Sanctions Act," providing a number of new sanctions against Russia, Iran, and North Korea. The President also issued a signing statement2 setting forth the Administration's views on the contents and constitutionality of the Act.

The Act includes the following sanctions measures relating to each of the three sanctions programs:

Russia: The Act codifies existing sanctions under the cybersecurity and Ukraine/Russia-related sanctions programs; tightens restrictions under sectoral sanctions by adding new sectors and shortening maturity dates for Directives 1, 2, and 4; adds additional sanctions measures by providing for secondary sanctions for persons determined to be engaging in certain activities relating to the Russian energy, defense, or intelligence sectors and for persons determined to be assisting or providing support for significant activities undermining cybersecurity; and requires the President to block and prohibit all transactions in property and interests in property of persons determined to be engaging in significant activities undermining cybersecurity, Russian Government officials or close associates or relatives of Russian Government officials determined to be engaging in acts of significant corruption, foreign persons determined to be evading sanctions, foreign persons determined to be committing human rights abuses, or foreign persons determined to be providing or engaging in activities related to providing arms to Syria...

Client Alert | International Trade
US Enacts “Countering America’s
Adversaries Through Sanctions
Act” Expanding Its Russia, Iran, and
North Korea Sanctions Programs
August 2017
EU Sanctions Team: James Killick, Genevra Forwood, Sara Nordin, Charlotte Van Haute,
Fabienne Vermeeren
US Sanctions Team: Richard Burke, Nicole Erb, Claire A. DeLelle, Kristina Zissis,
Cristina Brayton-Lewis
On August 2, 2017, the President signed into law the “Countering America’s
Adversaries Through Sanctions Act,” providing a number of new sanctions
against Russia, Iran, and North Korea.1 The President also issued a signing
statement2 setting forth the Administration’s views on the contents and
constitutionality of the Act.
The Act includes the following sanctions measures relating to each of the three sanctions programs:
Russia: The Act codifies existing sanctions under the cybersecurity and Ukraine/Russia-related sanctions
programs; tightens restrictions under sectoral sanctions by adding new sectors and shortening maturity dates
for Directives 1, 2, and 4; adds additional sanctions measures by providing for secondary sanctions for
persons determined to be engaging in certain activities relating to the Russian energy, defense, or intelligence
sectors and for persons determined to be assisting or providing support for significant activities undermining
cybersecurity; and requires the President to block and prohibit all transactions in property and interests in
property of persons determined to be engaging in significant activities undermining cybersecurity, Russian
Government officials or close associates or relatives of Russian Government officials determined to be
engaging in acts of significant corruption, foreign persons determined to be evading sanctions, foreign
persons determined to be committing human rights abuses, or foreign persons determined to be providing or
engaging in activities related to providing arms to Syria.
Iran: The Act requires the President to block and prohibit all transactions in property and interests in property
of persons determined to be providing support to Iran’s ballistic missile program or engaging in activities that
materially contribute to Iran’s acquisition of specified arms and related materials or providing technical
1 See the full text of the Act here.
2 See the full text of the official signing statement here. The President also made a statement regarding the Act that
largely tracks the contents of the signing statement. See the text of that statement here.
Client Alert White & Case 2
training, financial resources, or other services related to the acquisition or use of such materials; authorizes
the President to block and prohibit all transactions in property and interests in property of foreign persons or
their agents who are determined to have committed human rights abuses against certain parties; and requires
the President to designate the Iranian Revolutionary Guard Corps (“IRGC”) and foreign persons that are
officials, agents, and associates of the IRGC as Specially Designated Global Terrorists (“SDGTs”) on the List
of Specially Designated Nationals and Blocked Persons (“SDN List”) administered by the US Department of
the Treasury’s Office of Foreign Assets Control (“OFAC”).
North Korea: The Act provides for additional sanctions measures to aid in the enforcement of United Nations
(“UN”) Security Council Resolutions and to counteract the commission of human rights abuses, particularly
those related to forced labor, by requiring the designation of parties determined to be acquiring certain types
of ore from North Korea or conducting activities relating to designated aircraft or vessels; authorizing the
designation of parties determined to be operating in the transportation, mining, energy, or financial services
industries of North Korea or determined to have purchased specified items from, conducted transfers for, or
provided certain materials to the North Korean Government; prohibiting US persons from operating
correspondent accounts for the benefit of North Korea; requiring the withholding of assistance from foreign
governments determined to be providing to or receiving from North Korea defense articles or services;
requiring additional restrictions on North Korean vessels and vessels of countries not complying with UN
Security Council Resolutions relating to North Korea; prohibiting the import of North Korean goods unless it
can be proven by “clear and convincing evidence that [they]…were not produced with convict labor, forced
labor, or indentured labor under penal sanctions”; and requiring the President to block and prohibit all
transactions in property and interests in property of foreign persons identified as employing North Korean
laborers.
For all three programs, the Act expands the scope of activities for which a party could be designated on
OFAC’s SDN List. For individuals and entities on the SDN List, all transactions in property and interests in
property of these individuals and entities located in the United States or within the possession or control of a
US person, wherever located, are considered blocked and may not be dealt in. Any entity in which one or
more blocked persons directly or indirectly holds a 50 percent or greater ownership interest in the aggregate
is itself considered blocked by operation of law. US persons may not engage in any dealings, directly or
indirectly, with blocked persons.
Russia Sanctions
The Act codifies and expands various Russia sanctions and requires Congressional oversight of any efforts
by the President to terminate or alter those sanctions.
Codification of Ukraine/Russia-Related Sanctions and Expansion of Sectoral Sanctions
The Act codifies the existing Ukraine/Russia-related sanctions and cybersecurity sanctions3. Codifying these
sanctions measures means that they may no longer be lifted or modified pursuant to an Executive Order but,
similar to the Cuba sanctions program, would require an Act of Congress in order to be modified or
terminated.
3 These are sanctions currently imposed under: Executive Order 13660 (relating to blocking property of certain persons
contributing to the situation in Ukraine); Executive Order 13661 (relating to blocking the property of additional persons
contributing to the situation in Ukraine); Executive Order 13662 (relating to blocking the property of certain persons
contributing to the situation in Ukraine); Executive Order 13685 (relating to blocking the property of certain persons
and prohibiting certain transactions with respect to the Crimea region of Ukraine); Executive Order 13694 (relating to
blocking the property of certain persons engaging in significant malicious cyber-enabled activities); and Executive
Order 13757 (relating to additional steps to address the national emergency with respect to significant malicious
cyber-enabled activities).
Client Alert White & Case 3
Changes to Sectoral Sanctions:
The Act expands the scope of the sectoral sanctions which target specified sectors of the Russian economy
and tightens the restrictions on certain types of activities related to entities identified on the Sectoral
Sanctions Identification List (“SSI List”) pursuant to Directives 1, 2, and 4 of the sectoral sanctions:
Potential Expansion of Sectors Targeted
The Act expands the sectors targeted under Executive Order (“EO”) 13662 to potentially include state-owned
entities engaged in the railway or the metals and mining sectors of the Russian economy. The Act provides
that the Secretary of the Treasury may determine that such state-owned entities are targeted under the
sectoral sanctions. Prior to enactment of the Act, the sectors potentially targeted by EO 13662 included the
financial services, energy, metals and mining, engineering, and defense and related materiel sectors of the
Russian economy.
Required Revisions to the Sectoral Sanctions Directives
The Act provides that the Secretary of the Treasury will make the following modifications, within the time
frame mandated by the Act, to Directives 1, 2, and 4, which OFAC issued under EO 13662:
• The Act requires that Directive 1 be revised to prohibit United States persons or persons within the
United States from dealings in new debt of longer than 14 days maturity (previously it was 30 days
maturity) or equity of persons subject to Directive 1. The revision must be made by October 1, 2017 and
will be effective 60 days after the Directive is modified.
• The Act requires that Directive 2 be revised to prohibit United States persons or persons within the
United States from dealings in new debt of longer than 60 days maturity (previously it was 90 days
maturity) of persons subject to Directive 2. The revision must be made by October 1, 2017 and will be
effective 60 days after the Directive is modified.
• The Act requires that Directive 4 be revised to prohibit United States persons or persons within the
United States from, directly or indirectly, providing support for deepwater, Arctic-offshore, or shale
projects “that have the potential to produce oil” and “that involve any person determined to be subject to
the directive or the property or interests in property of such a person who has a controlling interest or a
substantial non-controlling ownership interest defined as not less than a 33 percent interest.” The revision
must be made by October 31, 2017 and will be effective 90 days after the Directive is modified. It seems
that under the modified language of this section that Directive 4 could now be interpreted to cover not only
projects in Russia but also projects outside of Russia.
Mandatory Blocking Sanctions:
The Act requires that, for persons determined to meet the criteria specified below, the President block and
prohibit all transactions in property and interests in property of such persons located in the United States or in
the possession or control of a US person. Aliens determined to meet the criteria specified below, in addition to
having their property and interests in property blocked, would be subject to visa denial and exclusion from the
United States. The criteria are as follows:
• Persons determined to have knowingly engaged in significant activities undermining cybersecurity4
against any person (including a democratic institution) or government on behalf of the Russian
Government, or persons that are owned or controlled by, or acting or purporting to act for or on behalf of,
directly or indirectly, such persons;
4 “Significant activities undermining cybersecurity” include: (1) significant efforts to deny access to or degrade, disrupt,
or destroy an information and communications technology system or network or to exfiltrate, corrupt, destroy, or
release information from such a system or network without authorization for purposes of conducting influence
operations or causing a significant misappropriation of funds, economic resources, trade secrets, personal
identifications, or financial information for commercial or competitive advantage or private financial gain; (2) significant
destructive malware attacks; and (3) significant denial of service activities.
Client Alert White & Case 4
• Officials of the Russian Government or close associates or family members of such officials determined to
be responsible for, complicit in, or responsible for ordering, controlling, or otherwise directing, acts of
significant corruption5 in the Russian Federation or any individual who materially assists or provides
support for such activities (previously such sanctions were discretionary);
• Foreign persons6 determined to have knowingly materially violated or attempted to, conspired to, or
caused the violation of any covered Executive Order7, the Support for the Sovereignty, Integrity,
Democracy, and Economic Stability of Ukraine Act of 2014, or the Ukraine Freedom Support Act of 2014
or determined to have knowingly facilitated a significant transaction for or on behalf of any person subject
to US sanctions imposed with respect to the Russian Federation or for or on behalf of a family member of
such persons;
• Foreign persons determined to be involved in the commission of serious human rights abuses “in any
territory forcibly occupied or otherwise controlled” by the Russian Government; persons who are owned or
controlled by, or acting or purporting to act for or on behalf of, directly or indirectly, such persons; or
persons who materially assist or support foreign persons determined to be involved in such activities; and
• Foreign persons8 determined to have knowingly provided Syria significant financial, material, or
technological support contributing to the Syrian Government’s acquisition of certain arms and arms-
related materiel; successor entities of such persons that are also foreign persons; or persons owned or
controlled by, or acting for or on behalf of, such persons.
Waiver: The President may waive the imposition of blocking sanctions on a party if the President deems the
waiver to be vital to the interests of US national security and submits a notice or written determination
detailing the justification to Congress. Certain provisions of the Act may require that the President provide
notices, written determinations, or certifications to Congress in addition to the notice that the waiver is vital to
the interests of US national security. Any action waiving sanctions is subject to congressional review as
discussed below.
Secondary Sanctions:
Secondary sanctions are imposed upon non-US persons for engaging in certain activities outside of the
United States that have been deemed “sanctionable” by the US government. No connection to the United
States (i.e., no US nexus) is needed for secondary sanctions to be imposed or enforced.
The Act requires or authorizes the President to impose a specified number of secondary sanctions measures,
selected from a menu of potential measures9, upon persons who meet the requirements described below.
5 “Acts of significant corruption” may include the expropriation of private or public assets for personal gain, corruption
related to government contracts or the extraction of natural resources, bribery, or the facilitation or transfer of the
proceeds of corruption to foreign jurisdictions.
6 This provision of the Act defines a “foreign person” as “any citizen or national of a foreign state (including any such
individual who is also a citizen or national of the United States), or any entity not organized solely under the laws of
the United States or existing solely in the United States, but does not include a foreign state.”
7 “Covered Executive orders” are: EO 13660 (relating to blocking the property of certain persons contributing to the
situation in Ukraine); EO 13661 (relating to blocking the property of additional persons contributing to the situation in
Ukraine); EO 13662 (relating to blocking the property of certain persons contributing to the situation in Ukraine); EO
13685 (relating to blocking the property of certain persons and prohibiting certain transactions with respect to the
Crimea region of Ukraine); EO 13694 (relating to blocking the property of certain persons engaging in significant
malicious cyber-enabled activities); and EO 13757 (relating to additional steps to address the national emergency
with respect to significant malicious cyber-enabled activities).
8 This provision of the Act defines a foreign person as “any citizen or national of a foreign state (including any such
individual who is also a citizen or national of the United States), or any entity not organized solely under the laws of
the United States or existing solely in the United States, but does not include a foreign state.”
9 Potential measures could include: (1) denying US Export-Import Bank financing; (2) denying export licensing; (3)
denying loans from US financial institutions totaling more than $10 million in any 12-month period unless the loans
and credit are provided for activities intended to alleviate human suffering; (4) requiring US executive directors to
Client Alert White & Case 5
Mandatory Sanctions: The President is required to impose sanctions upon:
• Persons determined to have knowingly materially assisted, sponsored, or provided financial, material, or
technological support for, or goods or services, including financial services, in support of, significant
activities undermining cybersecurity on behalf of the Government of the Russian Federation;
• Foreign persons who are determined to have knowingly made significant investments in “special Russian
crude oil projects”10 (previously such sanctions were discretionary);
• The President is required to impose sanctions on such parties on and after September 1, 2017.
• Persons who are determined to have “knowingly engage[d] in significant transactions” with a person that
is part of, or operates for or on behalf of, the defense or intelligence sectors of the Russian Government
(including the Main Intelligence Agency of the General Staff of the Armed Forces of the Russian
Federation or the Federal Security Service of the Russian Federation);
• By October 1, 2017, the Act requires that the President issue regulations or other guidance to specify
the persons that are part of, or operate for or on behalf of, the defense or intelligence sectors of the
Russian Government. On and after January 29, 2018, the Act requires that the President impose
sanctions on such parties.
• The President is authorized to delay imposing these sanctions upon a person by certifying to
Congress that the person is substantially reducing the number of transactions they conduct with
defense or intelligence individuals. The President is required to renew this certification every 180
days.
• Persons determined to have knowingly made or facilitated an investment of $10 million or more (or a
combination of investments of $1 million or more that exceed $10 million in a 12-month period) that
directly and significantly contributes to the privatization of Russian state-owned assets that unjustly
benefits Russian Government officials, their close associates, or their family members.
Mandatory Restrictions on Correspondent Accounts: The President is required to prohibit the opening of,
and prohibit or impose strict conditions on the maintaining, in the United States, of a correspondent account
or a payable-through account by a foreign financial institution determined to have:
• knowingly engaged in significant transactions for entities transferring, brokering, manufacturing, or selling
defense articles to Syria, or to other countries without the consent of the internationally recognized
government of that country, or for entities assisting in such activities;
• knowingly engaged in significant transactions related to significant investments by foreign persons in
special Russian crude oil projects;
international financial institutions to oppose any loans which would benefit the sanctioned person; (5) prohibiting the
designation of a sanctioned financial institution as a primary dealer in US Government Debt instruments and/or
prohibiting the sanctioned financial institution from serving as an agent of the United States or as a repository for US
Government funds; (6) denying the sanctioned person US Government procurement contracts; (7) prohibiting foreign
exchange transactions in which the sanctioned person has an interest that are subject to US jurisdiction; (8)
prohibiting transfers of credit or payments between, by, through, or to financial institutions to the extent that such
transfers or payments are subject to US jurisdiction and involve any interest of the sanctioned person; (9) prohibiting
any person from conducting transactions involving, dealing in or exercising any rights associated with, or acquiring,
holding, withholding, using, transferring, withdrawing, transporting, importing, or exporting any property that is subject
to the jurisdiction of the United States and with respect to which the foreign person has any interest, (10) prohibiting
US persons from transacting in, providing financing for, or otherwise dealing in equity or certain debt of a sanctioned
person; (11) denying a visa to any alien determined to be the corporate officer or principal of, or a shareholder with a
controlling interest in, a sanctioned person; and (12) imposing sanctions applicable to individuals on principal
executive officers of a foreign entity that is itself subject to sanctions.
10 A “special Russian crude oil project” means a project intended to extract crude oil from (A) the exclusive economic
zone of the Russian Federation in waters more than 500 feet deep; (B) Russian Arctic offshore locations; or (C) shale
formations located in the Russian Federation.
Client Alert White & Case 6
• knowingly engaged in significant transactions involving activities undertaken by Gazprom in relation to
withholding gas supplies from specified US allies should sanctions be imposed on Gazprom under the
contingent sanctions provision of the Ukraine Freedom Support Act of 2014 related to the withholding of
significant natural gas supplies; or
• facilitated significant financial transactions11 on behalf of any Russian person included on the SDN List
pursuant to Ukraine/Russia-related sanctions programs or the Ukraine Freedom Support Act of 2014
(previously such sanctions were discretionary).
Discretionary Sanctions: The President is authorized to impose sanctions on persons determined to have
knowingly made an investment in or provided to the Russian Federation goods, services or support reaching
a fair market value of $1 million or more (or aggregating to $5 million or more in a 12-month period) for the
construction, maintenance, or expansion of the construction, modernization, or repair of Russian energy
export pipelines.
Waiver: As described below, the President may waive the application of secondary sanctions upon
certification to Congress (e.g., whether the waiver is in the interest of US national security).
Requirement for Congressional Review of Executive Actions Relating
to Russia Sanctions
The Act prevents the President from terminating or waiving any of the Ukraine/Russia-related sanctions, any
sanctions imposed or codified pursuant to the Act, any sanctions imposed pursuant to the Support for the
Sovereignty, Integrity, Democracy, and Economic Stability of Ukraine Act of 2014 or the Ukraine Freedom
Support Act of 2014; from undertaking a licensing action that “significantly alters US foreign policy” with
respect to Russia; or from restoring access to the Russian Government’s compounds in Maryland and New
York without congressional review.
Before taking any such action, the President must submit a report to Congress describing whether the action
is intended to significantly alter foreign policy with respect to Russia and, if so, the nature of the change he is
proposing to make, its policy objectives, and its anticipated effect on US national security interests.
Once the President issues a report, Congress will have 30 calendar days to issue a joint resolution either
approving or disapproving of the action. The President may not act without a joint resolution of approval. If
Congress enacts a joint resolution of disapproval, the President may veto the disapproval but Congress may
override the veto. If Congress overrides the veto, the President is permanently barred from taking the action
unless Congress repeals the joint resolution of disapproval.
In his signing statement, President Trump objected to this requirement, stating that due to the inclusion of
provisions which “purport to allow Congress to extend the review period through procedures” not satisfying
constitutional requirements, the Act “seeks to grant Congress the ability to change the law outside the
constitutionally required process.” The President’s Statement went on to state that he will honor the waiting
periods in order to ensure that Congress will be able to fully utilize the Act’s review procedures.
Iran Sanctions
The Act imposes additional mandatory sanctions on Iran related to Iran’s ballistic missile program and to the
supply of certain weapons and related materials to Iran. The Act also provides for discretionary sanctions for
11 OFAC has issued guidance, in relation to the Iran sanctions program, regarding how it determines whether a
transaction or financial service is “significant.” It may consider: (1) the size, number, frequency, and nature of the
transaction(s); (2) the level of awareness of management of the transaction(s) and whether or not the transaction(s)
are a part of a pattern of conduct; (3) the nexus between the foreign financial institution involved in the transaction(s)
and a blocked individual or entity or blocked financial institution; (4) the impact of the transaction(s) on the goals of
the sanctions program; (5) whether the transaction(s) involved any deceptive practices; and (6) other factors the
OFAC deems relevant on a case-by-case basis.
Client Alert White & Case 7
human rights abuses committed against certain parties. Finally, the Act requires that the IRGC be designated
as a Specially Designated Global Terrorist pursuant to the terrorism sanctions program (EO 13224).
Sanctions Measures:
Mandatory Blocking Sanctions: The Act requires the President to block and prohibit all transactions in
property and interests in property of persons engaging in the activities described below. In addition, any aliens
engaging in such activities will be denied visas and excluded from the United States. The President is
required to impose such sanctions on:
• Persons determined to have knowingly engaged in activities or supported activities materially
contributing to Iran’s ballistic missile program or to any other Iranian program for “developing,
deploying, or maintaining systems capable of delivering weapons of mass destruction”; successor
entities of such persons; or persons owned or controlled by, or acting for or on behalf of, such
persons; and
• Persons determined to have knowingly engaged in activities that materially contribute to the
supply, sale, or transfer, directly or indirectly, to or from Iran, or for the use in or benefit of Iran, of
certain types of weapons12 or who provide to Iran technical training, financial resources or
services, advice, or other types of assistance related to the use of those weapons13.
Discretionary Blocking Sanctions for Human Rights Abusers: The Act authorizes the President to block
all transactions in property and interests in property of persons determined to be responsible for extrajudicial
killings, torture, or other gross violations of internationally recognized human rights committed against
individuals in Iran who seek to expose illegal activity carried out by officials of the Iranian Government or who
seek to obtain, exercise, defend, or promote internationally recognized human rights and freedoms (e.g.,
freedom of religion, freedom of expression, freedom of association and assembly, and the rights to a fair trial
and democratic elections). The President may also block all transactions in property and interests in property
of persons determined to be acting as an agent of or on behalf of a foreign person performing such activities.
The Act requires that the Secretary of State, within 90 days of enactment (i.e., October 31, 2017), and
annually thereafter, submit a list to Congress of persons (and any person acting as an agent of or on behalf of
a foreign person) determined, based on credible evidence, to be involved in such activities.
Designation of the IRGC as a Specially Designated Global Terrorist: The Act requires that, within 90 days
of enactment (i.e., by October 31, 2017), the President designate the IRGC and foreign persons who are
officials, agents, or affiliates of the IRGC as Specially Designated Global Terrorists (SDGT). Although the
IRGC is already on the SDN List, it is not currently designated under EO 13224 (relating to the blocking of
property and prohibiting transactions with persons who commit, threaten to commit, or support terrorism).
However, the IRGC-Quds Force is designated under that EO. US persons remain prohibited from transacting
or dealing in property or interests in property of the IRGC and from engaging in any transaction seeking to
evade or avoid that prohibition. US persons are also prohibited from engaging in any conspiracy to violate the
sanctions imposed upon the IRGC.
Exemptions and Waiver: The Act exempts from the application of the Iran-related sanctions described
above activities related to:
• authorized United States intelligence actions;
• the admission of persons to the United States if such persons are required to be admitted in order to
comply with the Agreement between the United Nations and the United States regarding the
12 These weapons include: battle tanks, armored combat vehicles, large caliber artillery systems, combat aircraft, attack
helicopters, warships, missiles or missile systems, or related materiels (including spare parts).
13 The President may waive the application of these sanctions with respect to a party if the President certifies to
Congress that permitting the activity is in the United States’ national security interest; that Iran no longer presents a
significant threat to national security; and that the Government of Iran has ceased providing support for acts of
international terrorism and no longer meets the requirements for being designated a State Sponsor of Terrorism.
Client Alert White & Case 8
Headquarters of the United Nations, the Vienna Convention on Consular Relations, or other applicable
international obligations of the United States; and
• the sale of agricultural commodities, food, medicine, or medical devices to Iran or for the provisions of
humanitarian assistance to the people of Iran.
In addition, the Act provides the President with the authority to waive the application of Iran-related sanctions,
on a case-by-case basis, and for not more than 180 days, if the President reports to Congress that the waiver
of sanctions is necessary to US national security interests. The waiver may be renewed provided that the
President submits a report for each renewal every 180 days.
North Korea Sanctions
The Act provides for new mandatory and discretionary sanctions on North Korea that expand the existing
sanctions regime established pursuant to the North Korea Sanctions and Policy Enhancement Act of 2016.
The Act establishes two categories of sanctions: (i) sanctions to enforce and implement various UN Security
Council Resolutions against North Korea; and (ii) sanctions with respect to human rights abuses by North
Korea.14
Sanctions to Enforce and Implement UN Security Council Resolutions Against North
Korea:
Expansion of Mandatory Designations: The Act mandates that the President designate any person who
the President determines knowingly, directly or indirectly15:
• purchases certain metals or minerals from North Korea;
• provides North Korea with significant amounts of rocket, aviation, or jet fuel for non-civilian uses;
• provides fuel or services to a vessel or aircraft designated under (or owned by a person designated
under) an applicable Executive Order or UN Security Council resolution;
• insures or facilitates registration of a vessel owned by the North Korean Government (unless
approved by the UN Security Council); or
• maintains a correspondent account with any North Korean financial institution (unless approved by
the UN Security Council).
Expansion of Additional Discretionary Designations: The Act authorizes the President to impose
sanctions on any person who the President determines knowingly, directly or indirectly:
• purchases or otherwise acquires from the North Korean Government significant quantities of coal,
iron, or iron ore, in excess of the limitations provided in applicable UN Security Council resolutions;
• purchases textiles, food, agricultural products, or fishing rights from the North Korean Government;
• facilitates transfers of funds, property, bulk cash, precious metals, or other items of value on behalf of
the North Korean Government;
14 The North Korea sanctions in the Act relating to various UN Security Council Resolutions may be impacted by the
recent adoption of UN Security Council Resolution 2371 on August 5, 2017, which provides for additional restrictions
on North Korea. See the full text of the UN Security Council Resolution 2371 (2017) here.
15 In addition, pursuant to the North Korea Sanctions and Policy Enhancement Act of 2016, these designated persons
are subject to enhanced inspection requirements, and potentially denied visas and entry into the United States. US
executive agencies are also prohibited from entering into procurement contracts with designated persons.
Client Alert White & Case 9
• provides oil or gas resources to the North Korean Government or conducts a significant transaction in
North Korea’s mining, energy, or financial services industries;
• facilitates online commercial activities of the North Korean Government;
• facilitates the export of workers from North Korea to generate revenue for the North Korean
Government; or
• facilitates the operation of a North Korean financial institution (except where specifically approved by
the UN Security Council).
Designation of Additional Persons: Within 180 days after enactment, the President must determine
whether reasonable grounds exist to designate the following entities and individuals: (i) the Korea
Shipowners’ Protection and Indemnity Association; (ii) Chinpo Shipping Company; (iii) the Central Bank of the
Democratic People’s Republic of Korea; (iv) Kumgang Economic Development Corporation; (v) Sam Pa (an
individual also known as Xu Jinghua); and (vi) the Chamber of Commerce of the Democratic People’s
Republic of Korea.
Prohibition on Indirect Correspondent Accounts: Under the Act, if a US financial institution has or obtains
knowledge that a correspondent account established, maintained, administered, or managed by that
institution for a foreign financial institution is being used by the foreign financial institution to provide
significant financial services indirectly to certain designated entities16, the US financial institution must ensure
that the correspondent account is no longer used to provide such services. The US financial institution may
process transfers of funds to or from North Korea, or for the direct or indirect benefit of those certain
designated entities only if the transfer “arises from, and is ordinarily incident and necessary to give effect to,”
an authorized transaction and does not involve debiting or crediting a North Korean account.
Enforcing Compliance with UN Shipping Sanctions Against North Korea: The Act prohibits ships owned
by the North Korean Government or a North Korean person or owned or operated on behalf of any country
the President determines is not complying with applicable UN Security Council resolutions from operating in
United States waters or landing at any US port. However, ships may be exempt if the Secretary of State
determines that exemption is in the interest of US national security or that the ship is owned or operated by,
or on behalf of, a country which the Secretary of State determines is closely cooperating with the United
States with respect to implementing the applicable UN Security Council resolutions.
Sanctions with Respect to Human Rights Abuses:
Import Prohibition: The Act establishes a rebuttable presumption that goods produced wholly or in part by
North Korean nationals are the product of forced labor, and are therefore subject to existing US import
prohibitions on goods made with forced labor. Consequently, goods produced by North Korean labor are
permitted to enter the United States only if US Customs and Border Protection finds “by clear and convincing
evidence” that such goods were not produced by forced, indentured, or convict labor.
Sanctions on Foreign Persons Employing North Korean Labor: The Act requires the President to identify
foreign persons who knowingly employ North Korean laborers, and to determine whether such persons meet
the criteria for the imposition of sanctions pursuant to the Trafficking Victims Protection Act or the North Korea
Sanctions and Policy Enhancement Act of 2016. If the President determines the person meets those criteria,
the President is required to block and prohibit transactions in property and interests in property of that person
in the United States, coming within the United States, or in the possession or control of a US person. A party
may not be designated if the President certifies to Congress that he has received “reliable assurances” that
the employment of North Korean laborers does not result in the direct or indirect transfer of value to the North
Korean Government; that all wages and benefits are provided directly to the laborers in local currency within
16 The relevant entities are any person, foreign government, or financial institution designated under Section 104 of the
North Korea Sanctions and Policy Enhancement Act.
Client Alert White & Case 10
the jurisdiction in which they reside; and that the laborers’ working conditions meet international standards. A
recertification must be submitted every 180 days or else the President is required to designate the party.
Regulations necessary for the implementation of these sanctions must be promulgated within 180 days of
enactment (i.e., January 29, 2018).
Report on Designation as a State Sponsor of Terrorism:
The Act requires the President to determine, within 90 days after enactment (i.e., October 31, 2017), whether
North Korea meets the criteria for designation as a State Sponsor of Terrorism. This designation would
subject North Korea to additional sanctions and export control restrictions.
The Presidential Signing Statement:
On August 2, 2017, the President issued an official signing statement (“the Statement”) setting forth the
Administration’s current official position on the Act. The Statement provides that while the President supports
“tough measures to punish and deter aggressive destabilizing behavior by Iran, North Korea, and Russia, this
legislation is significantly flawed.” The President objects to the sections of the Act which create what he views
as an unconstitutional restriction by Congress of the President’s “constitutional authority to recognize foreign
governments” and authority to conduct foreign relations. The Statement also sets forth the President’s
objection to the ability of Congress to extend the period of congressional review of presidential actions
terminating or waiving sanctions imposed pursuant to Russia sanctions, licensing activities that “significantly
alters US foreign policy” with respect to Russia, or restoring access to Russian Government compounds in
Maryland and New York, stating that it “seeks to grant the Congress the ability to change the law outside the
constitutionally required process.” However, the President goes on to state that he will honor the waiting
periods provided for in the Act and that the Administration will seek to implement the provisions of the Act “in
a manner consistent with the President’s constitutional authority to conduct foreign relations.” The Statement
closes with a remark that the Administration expects that Congress will not use the Act to “hinder our
important work with European allies to resolve the conflict in Ukraine” or to “hinder our efforts to address any
unintended consequences it may have for American business, our friends, or our allies.”
Companies doing business or looking to do business in Russia, Crimea, Iran, and North Korea should monitor
closely any measures imposed by the United States to ensure compliance. Penalties for noncompliance can
be severe.
White & Case LLP
Wetstraat 62 rue de la Loi
1040 Brussels
Belgium
T +32 2 239 26 20
EUsanctions@whitecase.com
White & Case LLP
701 Thirteenth Street, NW
Washington, District of Columbia 20005-3807
United States
T +1 202 626 3600
USsanctions@whitecase.com
In this publication, White & Case means the international legal practice comprising White & Case LLP, a New York State registered
limited liability partnership, White & Case LLP, a limited liability partnership incorporated under English law and all other affiliated
partnerships, companies and entities.
This publication is prepared for the general information of our clients and other interested persons. It is not, and does not attempt to be,
comprehensive in nature. Due to the general nature of its content, it should not be regarded as legal advice.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

White & Case LLP on:

"My best business intelligence, in one easy email…"

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

- hide

JD Supra Privacy Policy

Updated: May 25, 2018:

JD Supra is a legal publishing service that connects experts and their content with broader audiences of professionals, journalists and associations.

This Privacy Policy describes how JD Supra, LLC ("JD Supra" or "we," "us," or "our") collects, uses and shares personal data collected from visitors to our website (located at www.jdsupra.com) (our "Website") who view only publicly-available content as well as subscribers to our services (such as our email digests or author tools)(our "Services"). By using our Website and registering for one of our Services, you are agreeing to the terms of this Privacy Policy.

Please note that if you subscribe to one of our Services, you can make choices about how we collect, use and share your information through our Privacy Center under the "My Account" dashboard (available if you are logged into your JD Supra account).

Collection of Information

Registration Information. When you register with JD Supra for our Website and Services, either as an author or as a subscriber, you will be asked to provide identifying information to create your JD Supra account ("Registration Data"), such as your:

Email

First Name

Last Name

Company Name

Company Industry

Title

Country

Other Information: We also collect other information you may voluntarily provide. This may include content you provide for publication. We may also receive your communications with others through our Website and Services (such as contacting an author through our Website) or communications directly with us (such as through email, feedback or other forms or social media). If you are a subscribed user, we will also collect your user preferences, such as the types of articles you would like to read.

Information from third parties (such as, from your employer or LinkedIn): We may also receive information about you from third party sources. For example, your employer may provide your information to us, such as in connection with an article submitted by your employer for publication. If you choose to use LinkedIn to subscribe to our Website and Services, we also collect information related to your LinkedIn account and profile.

Your interactions with our Website and Services: As is true of most websites, we gather certain information automatically. This information includes IP addresses, browser type, Internet service provider (ISP), referring/exit pages, operating system, date/time stamp and clickstream data. We use this information to analyze trends, to administer the Website and our Services, to improve the content and performance of our Website and Services, and to track users' movements around the site. We may also link this automatically-collected data to personal information, for example, to inform authors about who has read their articles. Some of this data is collected through information sent by your web browser. We also use cookies and other tracking technologies to collect this information. To learn more about cookies and other tracking technologies that JD Supra may use on our Website and Services please see our "Cookies Guide" page.

How do we use this information?

We use the information and data we collect principally in order to provide our Website and Services. More specifically, we may use your personal information to:

Operate our Website and Services and publish content;

Distribute content to you in accordance with your preferences as well as to provide other notifications to you (for example, updates about our policies and terms);

Measure readership and usage of the Website and Services;

Communicate with you regarding your questions and requests;

Authenticate users and to provide for the safety and security of our Website and Services;

Conduct research and similar activities to improve our Website and Services; and

Comply with our legal and regulatory responsibilities and to enforce our rights.

How is your information shared?

Content and other public information (such as an author profile) is shared on our Website and Services, including via email digests and social media feeds, and is accessible to the general public.

If you choose to use our Website and Services to communicate directly with a company or individual, such communication may be shared accordingly.

Readership information is provided to publishing law firms and authors of content to give them insight into their readership and to help them to improve their content.

Our Website may offer you the opportunity to share information through our Website, such as through Facebook's "Like" or Twitter's "Tweet" button. We offer this functionality to help generate interest in our Website and content and to permit you to recommend content to your contacts. You should be aware that sharing through such functionality may result in information being collected by the applicable social media network and possibly being made publicly available (for example, through a search engine). Any such information collection would be subject to such third party social media network's privacy policy.

Your information may also be shared to parties who support our business, such as professional advisors as well as web-hosting providers, analytics providers and other information technology providers.

Any court, governmental authority, law enforcement agency or other third party where we believe disclosure is necessary to comply with a legal or regulatory obligation, or otherwise to protect our rights, the rights of any third party or individuals' personal safety, or to detect, prevent, or otherwise address fraud, security or safety issues.

To our affiliated entities and in connection with the sale, assignment or other transfer of our company or our business.

How We Protect Your Information

JD Supra takes reasonable and appropriate precautions to insure that user information is protected from loss, misuse and unauthorized access, disclosure, alteration and destruction. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. You should keep in mind that no Internet transmission is ever 100% secure or error-free. Where you use log-in credentials (usernames, passwords) on our Website, please remember that it is your responsibility to safeguard them. If you believe that your log-in credentials have been compromised, please contact us at privacy@jdsupra.com.

Children's Information

Our Website and Services are not directed at children under the age of 16 and we do not knowingly collect personal information from children under the age of 16 through our Website and/or Services. If you have reason to believe that a child under the age of 16 has provided personal information to us, please contact us, and we will endeavor to delete that information from our databases.

Links to Other Websites

Our Website and Services may contain links to other websites. The operators of such other websites may collect information about you, including through cookies or other technologies. If you are using our Website or Services and click a link to another site, you will leave our Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We are not responsible for the data collection and use practices of such other sites. This Policy applies solely to the information collected in connection with your use of our Website and Services and does not apply to any practices conducted offline or in connection with any other websites.

Information for EU and Swiss Residents

JD Supra's principal place of business is in the United States. By subscribing to our website, you expressly consent to your information being processed in the United States.

Our Legal Basis for Processing: Generally, we rely on our legitimate interests in order to process your personal information. For example, we rely on this legal ground if we use your personal information to manage your Registration Data and administer our relationship with you; to deliver our Website and Services; understand and improve our Website and Services; report reader analytics to our authors; to personalize your experience on our Website and Services; and where necessary to protect or defend our or another's rights or property, or to detect, prevent, or otherwise address fraud, security, safety or privacy issues. Please see Article 6(1)(f) of the E.U. General Data Protection Regulation ("GDPR") In addition, there may be other situations where other grounds for processing may exist, such as where processing is a result of legal requirements (GDPR Article 6(1)(c)) or for reasons of public interest (GDPR Article 6(1)(e)). Please see the "Your Rights" section of this Privacy Policy immediately below for more information about how you may request that we limit or refrain from processing your personal information.

Your Rights

Right of Access/Portability: You can ask to review details about the information we hold about you and how that information has been used and disclosed. Note that we may request to verify your identification before fulfilling your request. You can also request that your personal information is provided to you in a commonly used electronic format so that you can share it with other organizations.

Right to Correct Information: You may ask that we make corrections to any information we hold, if you believe such correction to be necessary.

Right to Restrict Our Processing or Erasure of Information: You also have the right in certain circumstances to ask us to restrict processing of your personal information or to erase your personal information. Where you have consented to our use of your personal information, you can withdraw your consent at any time.

You can make a request to exercise any of these rights by emailing us at privacy@jdsupra.com or by writing to us at:

You can also manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard.

We will make all practical efforts to respect your wishes. There may be times, however, where we are not able to fulfill your request, for example, if applicable law prohibits our compliance. Please note that JD Supra does not use "automatic decision making" or "profiling" as those terms are defined in the GDPR.

Timeframe for retaining your personal information: We will retain your personal information in a form that identifies you only for as long as it serves the purpose(s) for which it was initially collected as stated in this Privacy Policy, or subsequently authorized. We may continue processing your personal information for longer periods, but only for the time and to the extent such processing reasonably serves the purposes of archiving in the public interest, journalism, literature and art, scientific or historical research and statistical analysis, and subject to the protection of this Privacy Policy. For example, if you are an author, your personal information may continue to be published in connection with your article indefinitely. When we have no ongoing legitimate business need to process your personal information, we will either delete or anonymize it, or, if this is not possible (for example, because your personal information has been stored in backup archives), then we will securely store your personal information and isolate it from any further processing until deletion is possible.

Onward Transfer to Third Parties: As noted in the "How We Share Your Data" Section above, JD Supra may share your information with third parties. When JD Supra discloses your personal information to third parties, we have ensured that such third parties have either certified under the EU-U.S. or Swiss Privacy Shield Framework and will process all personal data received from EU member states/Switzerland in reliance on the applicable Privacy Shield Framework or that they have been subjected to strict contractual provisions in their contract with us to guarantee an adequate level of data protection for your data.

California Privacy Rights

Pursuant to Section 1798.83 of the California Civil Code, our customers who are California residents have the right to request certain information regarding our disclosure of personal information to third parties for their direct marketing purposes.

You can make a request for this information by emailing us at privacy@jdsupra.com or by writing to us at:

Some browsers have incorporated a Do Not Track (DNT) feature. These features, when turned on, send a signal that you prefer that the website you are visiting not collect and use data regarding your online searching and browsing activities. As there is not yet a common understanding on how to interpret the DNT signal, we currently do not respond to DNT signals on our site.

Access/Correct/Update/Delete Personal Information

For non-EU/Swiss residents, if you would like to know what personal information we have about you, you can send an e-mail to privacy@jdsupra.com. We will be in contact with you (by mail or otherwise) to verify your identity and provide you the information you request. We will respond within 30 days to your request for access to your personal information. In some cases, we may not be able to remove your personal information, in which case we will let you know if we are unable to do so and why. If you would like to correct or update your personal information, you can manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard. If you would like to delete your account or remove your information from our Website and Services, send an e-mail to privacy@jdsupra.com.

Changes in Our Privacy Policy

We reserve the right to change this Privacy Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our Privacy Policy will become effective upon posting of the revised policy on the Website. By continuing to use our Website and Services following such changes, you will be deemed to have agreed to such changes.

Contacting JD Supra

If you have any questions about this Privacy Policy, the practices of this site, your dealings with our Website or Services, or if you would like to change any of the information you have provided to us, please contact us at: privacy@jdsupra.com.

JD Supra Cookie Guide

As with many websites, JD Supra's website (located at www.jdsupra.com) (our "Website") and our services (such as our email article digests)(our "Services") use a standard technology called a "cookie" and other similar technologies (such as, pixels and web beacons), which are small data files that are transferred to your computer when you use our Website and Services. These technologies automatically identify your browser whenever you interact with our Website and Services.

How We Use Cookies and Other Tracking Technologies

We use cookies and other tracking technologies to:

Improve the user experience on our Website and Services;

Store the authorization token that users receive when they login to the private areas of our Website. This token is specific to a user's login session and requires a valid username and password to obtain. It is required to access the user's profile information, subscriptions, and analytics;

Track anonymous site usage; and

Permit connectivity with social media networks to permit content sharing.

There are different types of cookies and other technologies used our Website, notably:

"Session cookies" - These cookies only last as long as your online session, and disappear from your computer or device when you close your browser (like Internet Explorer, Google Chrome or Safari).

"Persistent cookies" - These cookies stay on your computer or device after your browser has been closed and last for a time specified in the cookie. We use persistent cookies when we need to know who you are for more than one browsing session. For example, we use them to remember your preferences for the next time you visit.

"Web Beacons/Pixels" - Some of our web pages and emails may also contain small electronic images known as web beacons, clear GIFs or single-pixel GIFs. These images are placed on a web page or email and typically work in conjunction with cookies to collect data. We use these images to identify our users and user behavior, such as counting the number of users who have visited a web page or acted upon one of our email digests.

JD Supra Cookies. We place our own cookies on your computer to track certain information about you while you are using our Website and Services. For example, we place a session cookie on your computer each time you visit our Website. We use these cookies to allow you to log-in to your subscriber account. In addition, through these cookies we are able to collect information about how you use the Website, including what browser you may be using, your IP address, and the URL address you came from upon visiting our Website and the URL you next visit (even if those URLs are not on our Website). We also utilize email web beacons to monitor whether our emails are being delivered and read. We also use these tools to help deliver reader analytics to our authors to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

Analytics/Performance Cookies. JD Supra also uses the following analytic tools to help us analyze the performance of our Website and Services as well as how visitors use our Website and Services:

Google Analytics - For more information on Google Analytics cookies, visit www.google.com/policies. To opt-out of being tracked by Google Analytics across all websites visit http://tools.google.com/dlpage/gaoptout. This will allow you to download and install a Google Analytics cookie-free web browser.

Facebook, Twitter and other Social Network Cookies. Our content pages allow you to share content appearing on our Website and Services to your social media accounts through the "Like," "Tweet," or similar buttons displayed on such pages. To accomplish this Service, we embed code that such third party social networks provide and that we do not control. These buttons know that you are logged in to your social network account and therefore such social networks could also know that you are viewing the JD Supra Website.

Controlling and Deleting Cookies

If you would like to change how a browser uses cookies, including blocking or deleting cookies from the JD Supra Website and Services you can do so by changing the settings in your web browser. To control cookies, most browsers allow you to either accept or reject all cookies, only accept certain types of cookies, or prompt you every time a site wishes to save a cookie. It's also easy to delete cookies that are already saved on your device by a browser.

The processes for controlling and deleting cookies vary depending on which browser you use. To find out how to do so with a particular browser, you can use your browser's "Help" function or alternatively, you can visit http://www.aboutcookies.org which explains, step-by-step, how to control and delete cookies in most browsers.

Updates to This Policy

We may update this cookie policy and our Privacy Policy from time-to-time, particularly as technology changes. You can always check this page for the latest version. We may also notify you of changes to our privacy policy by email.

Contacting JD Supra

If you have any questions about how we use cookies and other tracking technologies, please contact us at: privacy@jdsupra.com.

- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.